"2007 was a significant year for Noreco with rapid growth, new licenses, acquisition of Altinex and listing at the Oslo Stock Exchange, says CEO Scott Kerr in an interview in the annual report," the company said in a statement.
In their report, the Norwegian Energy Company board of directors described the highlights of 2007 and the outlook for the company.
Noreco delivered strong financial and operational performance while making significant progress towards the company's vision in 2007. A step change in the development of the company was the acquisition of the Oslo listed oil company Altinex ASA. Through the financing of this transaction, the company was fundamentally transformed from a private to a public company. The company subsequently listed its shares and bonds on the Oslo Bors in November 2007.
Further growth in the company in the year was secured through the acquisition of 6 licenses and 18 license awards in the Norwegian APA license rounds of 2006 and 2007. Another key milestone for the company was the commencement of the company's planned 30 well exploration and appraisal drilling program to be undertaken between late 2007 and 2010.
The board reported that to date the first five wells of the drilling program has been completed successfully, and in accordance with planned targets.
The board believes that the market fundamentals for the upstream oil and gas industry will remain strong, with sustained high oil prices.
Following the successful performance in 2007, the company has established a sound platform for further growth. The board believes that reinvestment of the cashflow from the producing fields into the company's organic growth through an extensive exploration and drilling program will deliver very good shareholder returns in the long run.
An extensive work program for 2008, with participation in a total of 18 wells at the heart, positions the company very well for organic growth in 2008 and beyond. Production for 2008 is expected to be in the range 9000 to 9500 barrels of oil equivalents per day. Four of the company's 14 discoveries are progressing to development decisions, which will increase the reserve base of the company during 2008.
Acquisitions and mergers will be considered provided that they support this strategic direction and create long term value for shareholders. The Noreco team is determined to continue to strive towards the vision of creating a leading independent oil and gas company in the North Sea.
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